MULTIPLE CHOICE.

Choose the one alternative that best completes the statement or answers
the question.
1)
Any indirect financial payments given to employees are known as:
1)
_______
commissions.
stock options.
perquisites.

A)
B)
C)

D)
employee benefits.
E)
financial incentives.
2)
Outsourcing benefits administration to a third-party expert has the following advantage(s):
2)
_______

A)
fewer benefit claims.
B)
greater efficiency and consistency, and enhanced service.
C)
reduced cost.
D)
increased employee understanding of benefits.
E)
reduced cost and enhanced service.
3)
The following factor(s) is/are expected to increase the cost of benefits:
3)
_______
baby boomers.
pension plans.

A)
B)

C)
looming labour shortage.
D)
advances in dental care.
E)
employee services.
4)
The average cost of benefits, as a percentage of payroll, is approximately:
4)
_______

A)

50%.
B)
37%.
C)
25%.
D)
10%.
E)
30%.
5)
A government-sponsored program that provides weekly income benefits if a person is unable to work
through no fault of his/her own is usually called:
5)
_______
strike pay.
sick pay.

A)
B)

C)
employment insurance.
D)
termination pay.
E)
severance pay.
6)
The EI benefit is generally 55% of average earnings during the last 14 to 26 weeks of the:
6)
_______

A)
previous calendar year.
B)
qualifying period.
C)
previous 52 weeks.
D)
probationary period.
E)
benefit period.

7)
The purpose of an SUB plan is:

7)
_______

A)
to provide benefits separate from EI so that employees can better maintain their standard of living during
periods of unemployment.
B)
to supplement maternity leave.
C)
to facilitate an agreement between an employer and the employees.
D)
to supplement EI benefits by receiving a combined benefit closer to the actual working wage.
E)
the result of collective bargaining.
8)
The three types of benefits provided under the Canada/Quebec Pension Plan are:
8)
_______

A)
retirement, survivor, old age security.
B)
disability, survivor, old age security.
C)
retirement, vacation, disability.
D)
retirement, disability, survivor.
E)
retirement, survivor, health care.
9)
Workers' compensation is in effect a ________ insurance plan to help employees with work-related injuries
or illnesses get well and return to work.
9)
_______
bureaucratic
"no cost"
pension
"no fault"

A)
B)
C)
D)
E)

guaranteed
10)
All parties agree that the best way to manage workers' compensation claims over the long term is:
10)
______
A)
privatization of workers' compensation.
B)
instituting employee premiums.

C)
better claims monitoring.
D)
accident prevention.
E)
reducing benefits.
11)
Abacus Trucking Ltd. has experienced a rise in workers compensation claims over the past year. You are
the Human Resources professional who has been asked what the company can do to reduce the number of
claims. You respond that the following are steps the company should take EXCEPT:
11)
______
A)
comply with government safety standards.
B)
institute effective health and safety programs.
C)
institute rehabilitation programs for injured or ill workers.
D)
discipline workers who have more than one workers' compensation claim.
E)
provide career counseling to guide employees into less strenuous or stressful jobs.

12)
Individualized benefit plans allowed by some employers in order to accommodate employee preferences
for benefits are known as:
12)
______

A)
constrained benefits plans.
B)
individualized benefits plans.
C)
flexible benefits programs.
D)
family-friendly benefits.
E)
perquisite benefits plans.
13)
A benefit that provides pay to an employee when he/she is out of work because of a non-work related
injury or illness is called:
13)
______
severance pay.

A)

B)
short-term disability/sick leave.
C)
workers' compensation.
D)

unemployment pay.
E)
hospitalization benefits.
14)
An employer tactic to minimize the problem of employees' excessive use of sick days would include the
following EXCEPT:
14)
______
A)
aggressively investigating all absences.
B)
holding cash prize lotteries for employees with perfect attendance.
C)
increasing the number of sick days for employees.
D)
calling the absent employees at their homes.
E)
buying back unused sick leave at the end of the year.
15)
The amount of time off provided for bereavement leave varies by jurisdiction, and also depends on:
15)
______

A)
the employee's length of service.
B)
the closeness of the relationship between the employee and the deceased.
C)
family circumstances.
D)
the location of the funeral.
E)
the reason for the death.
16)
One or more of parental, paternity, and adoption leaves are provided in each Canadian jurisdiction. These
leaves range from ________ weeks to ________ weeks.
16)
______
8, 52
2, 15
6, 12
12, 24

A)
B)
C)
D)
E)

9, 25
17)
Employees in Ontario and the federal jurisdiction may be eligible for ________ in certain termination
situations, in addition to pay in lieu of notice.

17)
______
terminal pay
severance pay
notice pay
exit pay

A)
B)
C)
D)

E)
unemployment pay
18)
An employer is required to provide advance notice to an employee whose employment is being
terminated, unless the employee is working on a short-term contract or:
18)
______

A)
the employee is being fired for just cause.
B)
a mass layoff is occurring.
C)
the employee works outdoors.
D)
the employee is eligible for early retirement.
E)
the company is shutting down.
19)
Some provinces require additional termination pay when mass layoffs occur. The amount of additional pay
depends on:
19)
______

A)
the reasons for the layoff.
B)
the time of year.
C)
the level of unemployment in the region.
D)
the number of employees being laid off.
E)
the employee's length of service.
20)
A type of life insurance providing for lower rates than for individual insurance, and including all employees,
regardless of health or physical condition, is called:
20)
______

A)
group life insurance.
B)

term insurance.
C)
endowment insurance.
D)
whole life insurance.
E)
universal life insurance.
21)
Group life insurance is usually provided in the amount of:
21)
______

A)
five years' salary.
B)
two years' salary.
C)
$100,000.
D)
one year's salary.
E)
$25,000.
22)
The benefit that provides a fixed lump-sum benefit in addition to life insurance benefits when death is
accidental is:
22)
______

A)
survivors' benefit.
B)
health insurance.
C)
dental coverage.
D)
accidental death and dismemberment insurance.
E)
major medical insurance.
23)
Critical illness insurance provides:
23)
______
A)
coverage providing a fixed lump-sum benefit in addition to life insurance benefits when death is accidental.
B)
coverage providing a lump-sum benefit to an employee who is diagnosed with a life-threatening illness.
C)
a deductible expense per year that gives money for expensive new drugs.
D)
coverage for prescription drugs.
E)
money to an employee paid in incrementals for critical illness.

24)
The benefits that form the cornerstone of almost all benefits programs are:
24)
______

A)
life insurance and long-term disability.
B)
life insurance and pension plan.
C)
long-term disability and pension plan.
D)
life insurance and supplementary health care/medical insurance.
E)
life insurance, long-term disability, and supplementary health care/medical insurance.
25)
Employers provide supplementary health care/medical insurance to provide protection for employees
against the following costs EXCEPT:
25)
______

A)

physician's fees.

B)
prescription drugs.
C)
physiotherapy.
D)
medical supplies.
E)
private duty nursing.
26)
Common health-related insurance plans other than supplementary health care/medical insurance include
the following:
26)
______

A)
chronic illness benefits; vision care; dental care.
B)
vision care; physiotherapy.
C)
vision care; psychological counseling; dental insurance.
D)
group legal insurance.
E)
vision care; hearing aids; dental care.
27)
The amount of health/dental expenses an employee must pay before insurance benefits will be paid is
called:
27)
______

A)

life insurance.
the deductible.

B)

C)
workers' compensation.
D)
coinsurance.
E)
dental coverage.
28)
The biggest issue facing benefits managers in Canada today is:
28)
______

A)

pension funding.

B)
workers' compensation costs.
C)
retiree benefits.
D)
AIDS coverage.
E)
increasing health care benefit costs.
29)
The main reasons for increasing health care benefit costs are:
29)
______
A)
increasing workers' compensation claims for occupational illness, and expensive new drugs.
B)
increasing use of expensive new drugs, rising drug utilization, and "cost cutting" reductions in provincial
health care plans.
C)
psychiatric disabilities and AIDS.
D)
rising drug utilization and expensive new drugs.
E)
"cost cutting" in provincial health care plans, and the AIDS epidemic.

30)
Canadian employers pay about ________% of all health care expenses in Canada, most of which is for
prescription drugs.
30)
______

A)

50
B)
30

C)
40
D)
36
E)
25
31)
A "golden parachute" is an executive perk in the form of a salary guarantee in the following circumstances:
31)
______
A)
overseas transfer.
B)
divorce from spouse.
C)
targeting of the company for acquisition or merger.
D)
termination of employment.
E)
death of the executive in a work-related accident.
32)
The percentage of expenses (in excess of the deductible) that are paid for by the insurance plan is called
the:
32)
______
insured amount.
assessment.
premium.

A)
B)
C)

D)
coinsurance level.
E)
uninsured amount.
33)
The simplest approach to reducing health benefit costs is to increase the amount of health care costs paid
by:
33)
______
smokers.
employees.

A)
B)

C)
provincial governments.

D)
the federal government.
E)
workers' compensation plans.
34)
Approaches to health care benefit cost reduction include the following EXCEPT:
34)
______
A)
increase the amount of health care costs paid by employees.
B)
health promotion.
C)
risk-assessment programs.
D)
increasing government subsidies.
E)
publish a restricted list of drugs that will be paid for under the plan.
35)
Employers can reduce the cost of retiree benefits in the following ways EXCEPT:
35)
______

A)
increasing deductibles.
B)
increasing costs paid by workers' compensation.
C)
tightening eligibility requirements.
D)
increasing retiree contributions.
E)
reducing maximum payouts.
36)
Executive perquisites are usually provided to:
36)
______
A)
head office executives.
B)
the CEO and the president.
C)
executives with base salaries of $100,000 or more.
D)
all executives.
E)
only a few top executives.
37)
Disability management is a:
37)

______
A)
process that coordinates the activities of employer and employee.
B)
proactive, employee-centred process.
C)
proactive, employer-centred process that coordinates activities of the employer, the insurance company,
and health care providers.
D)
reactive, employer-centred process.
E)
proactive, employer-centred process.
38)
Effective disability management programs include:
38)
______
A)
monitoring worker's compensation.
B)
monitoring sick leave plans.
C)
a required company medical.
D)
early and safe return-to-work policies.
E)
remedial programs.
39)
One of the most common approaches to returning a worker with a disability to work is:
39)
______

A)
prevention programs.
B)
reduced work duties.
C)
early assessment and intervention.
D)
providing additional compensation.
E)
providing termination pay.
40)
Costs associated with mental health problems relate to:
40)
______
A)
increased drug usage.
B)
younger workers.
C)
short- and long-term disability.
D)
long-term disability and increased drug usage.

E)
short-term disability and increased drug usage.
41)
The fastest growing occupational disabilities are:
41)
______
A)
repetitive strain injuries.
B)
psychiatric.
C)
HIV/AIDS-related.
D)
chronic fatigue.
E)
back problems.
42)
The most common psychiatric disability is:
42)
______

A)
multiple personality disorder.
B)
anxiety attacks.
C)
schizophrenia.
D)
depression.
E)
obsessive-compulsive disorder.
43)
A Harvard University study projects that, by 2020, ________ will become the biggest source of lost workdays
in developed countries.
43)
______
depression

A)
B)

anxiety attacks

C)
work-related illness
D)
occupational illness
E)
psychiatric illness
44)
Many companies are trying to reduce the cost of psychiatric disabilities in the following ways EXCEPT:
44)
______

A)
prevention programs.
B)
employment testing.
C)
psychiatric counseling.
D)
early intervention programs.
E)
peer support groups.
45)
Unlike government-provided retirement benefits, employer-sponsored pension plans are:
45)
______
pre-funded.
easily managed.
formalized.

A)
B)
C)

D)
invested in foreign securities.
E)
restricted to deferred profit sharing.
46)
A type of pension plan that contains a formula for determining retirement benefits so that the actual
benefits to be received are defined ahead of time is called a:
46)
______
A)
money purchase pension plan.
B)
defined benefit pension plan.
C)
retirement plan.
D)
defined contribution pension plan.
E)
deferred profit-sharing plan.
47)
A type of pension plan that specifies what contribution the employer will make to a retirement or savings
fund set up for the employee is called a:
47)
______
A)
defined contribution pension plan.
B)
retirement plan.
C)
government-sponsored plan.
D)
defined benefit pension plan.

E)
deferred profit-sharing plan.
48)
A type of retirement plan that does not guarantee the eventual pension benefit an employee will receive at
retirement, but only what the employee and employer contributions to the plan will be, is called a:
48)
______

A)
defined contribution pension plan.
B)
defined benefit pension plan.
C)
retirement plan.
D)
deferred profit-sharing plan.
E)
government-sponsored plan.
49)
A pension plan in which a certain amount of profit is credited to each employee's account, payable at
retirement, termination, or death, is a:
49)
______

A)
deferred profit-sharing plan.
B)
group pension plan.
C)
defined benefit pension plan.
D)
defined contribution plan.
E)
group RRSP.
50)
Group RRSP/DPSP combinations are popular in Kerrie's company and commonly popular in Canada. Kerrie
found this out because:
50)
______
A)
they increase severance payments.
B)
membership is automatic upon beginning employment.
C)
no tax is paid until money is received from the plans at the time of employee's death.
D)
no tax is paid at all.
E)
employer's provide contribution to them.
51)
In a contributory pension plan, contributions are made by:

51)
______
A)
both the employer and the employee.
B)
the government and the employee.
C)
the government and the employer.
D)
the employer only.
E)
the employee only.
52)
Defined benefit plans are expected to remain in large organizations with a norm of:
52)
______
long tenure.
layoffs.
high turnover.

A)
B)
C)
D)

unionization.

E)
early retirement incentives.
53)
A provision in pension plans referring to the money contributed by the employer that has been placed in a
pension fund and cannot be forfeited for any reason is:
53)
______
bonding.
vesting.
non-funding.

A)
B)
C)
D)

investing.

E)
stockholder equity.
54)
In most provinces, employer pension plan contributions must be vested once the employee has completed
________ years of service.
54)
______

A)

4
B)

2
C)
5
D)
3
E)
1
55)
A pension provision whereby employees who change jobs can transfer the lump sum value of the pension
they have earned to a locked-in RRSP or their new employer's pension plan is:
55)
______
portability.

A)

B)
flexible pensions.
C)
non-funding.
D)
a non-locked-in provision.
E)
vesting.
56)
Once an employee is vested, he or she will not receive any benefit from the pension plan until:
56)
______
changing jobs.

A)
B)

retirement.

C)
30 years of service.
D)
termination.
E)
disability.
57)
Family-friendly benefits options include the following EXCEPT:
57)
______
A)
a casual dress code.
B)
telecommuting.
C)
alternative transportation options.

D)
subsidies for paid parental leave.
E)
outsourcing benefits administration.
58)
Employers who offer a defined contribution pension plan must pay careful attention to their obligation to
educate and inform plan members about:
58)
______

A)
early retirement incentives.
B)
pension investments.
C)
pension benefits formula.
D)
pension vesting.
E)
pension portability.
59)
Employers must pay careful attention to their obligation to educate plan members about pension
investment. They must also:
59)
______

A)
provide quarterly bulletins.
B)
advise.
C)
provide sessions.
D)
cousel.
E)
inform.
60)
The looming labour shortage when baby boomers start retiring is resulting in employers seeking to retain
older employees. Mel's organization is experiencing this issue. One program to support this issue is:
60)
______

A)

RRSPs.

B)
defined benefit pension plans.
C)
supplemental employee retirement plans.
D)
defined contribution pension plans.
E)
phased retirement.
61)
The following are personal services that most employees need at one time or another EXCEPT:

61)
______
clerical services.
counseling.

A)
B)
C)

credit unions.

D)
employee assistance plans.
E)
social/recreational opportunities.
62)
The following are counseling services employers are providing to their employees EXCEPT:
62)
______
A)
career counseling.
B)
real-estate counseling.
C)
family counseling.
D)
preretirement counseling.
E)
financial counseling.
63)
A formal employer program for providing employees with counseling and/or treatment programs for
problems such as mental health issues, marital/family problems, legal problems or stress is called a(n):
63)
______
A)
employee services benefit.
B)
employee assistance program.
C)
rehabilitation program.
D)
AA and NA program.
E)
legal aid benefits.
64)
A job-related services benefit that is designed to help employees who must help elderly parents or
relatives who are not fully able to care for themselves is known as:
64)
______
A)
on-site eldercare.
B)
family medical care.

C)
personal care.

D)

eldercare.

E)

aging care.
65)
The number of EAPs in Canada is growing because they are a proactive way for organizations to reduce:
65)
______
counseling costs.

A)

B)
employee services costs.
C)
disability costs.
D)
supervisory training costs.
E)
disciplinary costs.
66)
The following are various social and recreational opportunities extended to the employees EXCEPT:
66)
______

A)
pre-retirement counseling.
B)
parties.
C)
athletic events.
D)
craft activities.
E)
annual summer picnics.
67)
Based on survey data, the following are benefits to employers who institute subsidized day care centres
EXCEPT:
67)
______

A)
increased productivity.
B)
enhanced recruitment.
C)
lower performance appraisals.
D)
lowered absenteeism.
E)
lower turnover.
68)
To date, the evidence regarding the actual effects of employer-sponsored child care on employee

absenteeism, turnover, productivity, recruitment, or job satisfaction is:

68)
______
A)
positive, with respect to increasing obstacles in coming to work.
B)
negative, in respect to employees' attitudes.
C)
positive, with respect to reducing obstacles in coming to work and improving workers' attitudes.
D)
positive, without consideration of obstacles or attitudes toward work.
E)
neutral, with some positive and some negative effects.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
69)
Employee benefits are available to specific employees and do not include health and life insurance,
vacations and child care facilities.
69)
______
70)
The EI program is funded solely by contributions from eligible employees.
70)
______
71)
Unemployment benefits are meant for workers who are unable to work through no fault of their own.
71)
______
72)
The Canada/Quebec Pension Plan provides three types of benefits: retirement income, survivor benefits,
and disability benefits.
72)
______
73)
The provincial and federal governments both contribute funds for workers' compensation.
73)
______
74)
Eligibility requirements for vacations (in excess of the legislated minimum amount) vary from firm to firm.
74)
______

75)
Unpaid leaves of absence are costless for employers.
75)
______
76)
Employees who work during the notice period provided by the employer before employment is terminated
receive a lump sum payment called "pay in lieu of notice."
76)
______
77)
Most group life insurance plans contain a provision for including all employees regardless of health or
physical condition.
77)
______
78)
Accidental death and dismemberment coverage provides annuity payments in addition to life insurance
benefits when death is accidental.
78)
______
79)
Employers are not required to disclose liabilities related to retiree benefits.
79)
______
80)
A defined benefit pension plan contains a formula.
80)
______
81)
Melanie has a defined contribution pension plan. She will know the actual benefits she will get ahead of
time.
81)
______
82)
Eldercare is designed to help older employees who are not fully able to care for themselves.
82)
______
83)

Some employers provide subsidized employee transportation.

83)
______
84)
A flexible benefits plan may include certain non-optional items.
84)
______

ESSAY. Write your answer in the space provided or on a separate sheet of paper.
85)
Briefly describe the four major government-sponsored employee benefits in Canada.
86)
List some of the employee benefits that an employer may offer.
87)
Explain the key policy issues to be considered when an employer develops a pension plan to meet his/her
own unique needs.
88)
Briefly outline the various types of executive perquisites.
89)
Explain the advantages and disadvantages of flexible benefits plans.
90)
Explain three strategies for reducing health-benefit costs.
91)
Discuss the differences between a defined benefit and a defined contribution pension plan.
92)
Explain what an EAP offers employees.